What is a Pivot Point?
A Pivot Point Calculator is a must-have tool for traders and investors looking to enhance their market analysis and trading strategies. By using the previous day’s high, low, and close prices, this calculator helps determine key price levels where the market trend could potentially reverse, known as pivot points.
Pivot points are widely used in forex trading, stock markets, and commodities. With our Pivot Point Calculator, you can quickly calculate these critical price levels, including support and resistance levels. These calculations assist traders in identifying potential entry and exit points, making more informed trading decisions.
Pivot Point, Resistance and Support Levels Standard Formuala Used in Calculations
Pivot Point (PP) = (High + Low + Close) / 3
First Resistance (R1) = (2 x PP) – Low
First Support (S1) = (2 x PP) – High
Second Resistance (R2) = PP + (High – Low)
Second Support (S2) = PP – (High – Low)
Third Resistance (R3) = High + 2 x (PP – Low)
Third Support (S3) = Low – 2 x (High – PP)
Key Features of the Pivot Point Calculator:
- Simple and Quick: Input the previous day’s high, low, and close prices to instantly get pivot points.
- Accurate Market Analysis: Provides precise support and resistance levels.
- Versatile Application: Suitable for forex, stocks, and commodity markets.
- Risk Management: Helps in identifying potential risk zones for better market positioning.
How to Use the Pivot Point Calculator:
- Enter the previous trading session’s high, low, and closing prices.
- Press the calculate button to generate the pivot point along with support and resistance levels.
- Use these levels to strategize your trading moves.
By leveraging our Pivot Point Calculator, traders can gain valuable insights into market trends, enhance their risk management strategies, and make more calculated decisions.
